Earnings per Share Level 1 (Notes)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

EARNINGS PER SHARE

We compute basic earnings per common share by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common shares include additional shares in the weighted average share calculations associated with the incremental effect of dilutive employee stock options, restricted stock awards and contingently issuable shares, as determined using the treasury stock method. The

following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share (in thousands):

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2012	2011	2012	2011
	(Unaudited)		(Unaudited)
Weighted average basic common shares outstanding	47,232	46,606	47,436	45,930
Effect of dilutive securities:
Stock options	11	12	12	20
Contingent shares	136	80	128	69
Restricted stock and other	149	249	178	266
Senior exchangeable notes	—	1,083	—	1,144
Warrants	—	—	—	1,205
Weighted average diluted common and potential common shares outstanding	47,528	48,030	47,754	48,634

In 2006, we issued $300 million aggregate principal amount of Senior Exchangeable Notes (the "Exchangeable Notes") which were exchangeable into shares of Core Laboratories N.V. common stock under certain circumstances. Included in the table above are 1,083,000 shares which were added to the share count for the three months ended September 30, 2011, and 1,144,000 shares which were added to the share count for the nine months ended September 30, 2011.  These shares were included in calculating the impact to our dilutive earnings per share for the three and nine months ended September 30, 2011. All of the Exchangeable Notes were exchanged or reached maturity in 2011.

In 2006, we sold warrants that gave the holders the right to acquire our common shares. Included in the table above are 1,205,000 shares which were added to the share count for the nine months ended September 30, 2011, because the average share price exceeded the strike price of the warrants.  These shares were included in calculating the impact to our dilutive earnings per share for the nine months ended September 30, 2011. The warrants were fully settled in 2011.